This bill amends Minnesota Statutes to introduce a vendor allowance for retailers collecting sales and use taxes. It modifies existing provisions in sections 289A.20 and 297A.77, establishing that vendors can retain a portion of the sales tax collected to compensate for the costs associated with tax collection and administration. The bill specifies that the vendor allowance is applicable only if the tax, after accounting for the allowance, is reported and remitted to the commissioner in a timely manner. Additionally, it outlines the calculation of the vendor allowance based on the vendor's sales tax liability, with specific percentages and thresholds defined for different ranges of liability.

The bill also clarifies that use taxes paid by sellers on their own purchases are not eligible for the vendor allowance, while all other sales and use taxes collected are. The effective date for these changes is set for sales and purchases made after June 30, 2024. The amendments aim to streamline the tax remittance process for vendors while providing them with a financial incentive to comply with tax regulations.

Statutes affected:
Introduction: 289A.20, 297A.77